Energy

Gas Drops to $1.13 in Arizona

Douglas A. McIntyre

Published: March 7, 2016 11:05 am

Last Updated: January 13, 2020 12:18 pm

Oil prices may have moved up over the past three weeks, but that has not kept gasoline prices in some areas of the United States from staying just above $1. In one small section of Arizona, the price is $1.13, compared to the U.S. average per gallon of regular of $1.75.

Two stations in South Tucson sell a gallon of regular for $1.13. Some 23 stations have a price under $1.17. Of the 100 stations in the United States with cheapest gas, all are in Arizona, mostly around Tucson.

Gas prices are made up primarily of three things. The first is the price of oil. The next is proximity to refineries, and the last is state gas taxes and levies.

Although oil prices have recovered from under $29 a month ago to $36, they are still down by nearly half from just over a year ago. Lack of demand in major nations such as China may cap or drive prices down. Saudi Arabia continues to say it wants to maintain its market share of the global market. To do this, it will need to keep its production high. Oil from Iran has just hit Europe, after being blocked by years of sanctions.

Arizona does not have refineries of its own. However, it is relatively close to the huge cluster of refineries just south of Houston on the Gulf of Mexico, near to deepwater production platforms.

Arizona has the least expensive gas among all the states at $1.52 a gallon, according to GasBuddy. The state also has among the lowest amount for gas taxes and levies at $0.374 a gallon, compared to the national average of $0.480, according to the American Petroleum Institute. So, the contribution of the level of tax to total gas price is significant.

Based on all these factors, even if gas prices rise, Arizona’s will stay near the bottom.